Nickel ore inventories at Chinese ports extend decline

According to customs data, China imported 129,000 mt of nickel hydrometallurgy intermediate products in March, or 24,600 mt in nickel content (up 154% MoM and flat YoY).

Nickel Salt Prices Rebound, Limited Profit Recovery for Salt Plants [SMM Nickel Meeting Notes] On May 23, Jinchuan premiums were quoted at 1000-1200 RMB/ton, with an average of 1100 RMB/ton, up 400 RMB/ton from the previous trading day. Russian nickel premiums were quoted at -600 to -300 RMB/ton, with an average of -450 RMB/ton, unchanged from the previous trading day. This morning, the market fell sharply along with the overall base metals market, and the spot market transactions showed some improvement compared to before, but were still mainly driven by just-in-time purchasing. Today's nickel bean prices were 149,000-149,800 RMB/ton, down 5050 RMB/ton from the previous day's spot prices, and the price difference between nickel beans and nickel sulfate was about 2582 RMB/ton (nickel sulfate prices were 2582 RMB/ton lower than nickel bean prices).

On May 23rd, The price of SMM battery grade nickel sulfate index is 32389 yuan/ton, an increase of 189 yuan/ton compared to the previous working day. The price of battery grade nickel sulfate is 32000-32500 yuan/ton, an average increase of 100 yuan/ton compared to the previous working day.

Price Performance: Last week, nickel sulphate prices rebounded, with the transaction range between 31,000-31,500 yuan/mt.

Towards the end of the month, the forward raw material demand of stainless steel plants was released, and the  [Nickel Pig Iron Daily Review] [SMM Daily Review: Towards the end of the month, the forward raw material demand of stainless steel plants was released, and the upstream was more willing to raise the price, and the price of ferronickel transaction prices rose] On April 23, the average price of SMM8-12% high nickel pig iron was 956 yuan/nickel point (ex-factory tax included), up 4.5 yuan/nickel point from the previous working day...

Since the continuous rise in nickel sulfate prices after the holiday, nickel sulfate has become the focus of attention in the nickel industry chain recently, so what is the specific reason befind it? In a word, the supply and demand of nickel sulfate finished products are tighter than raw materials, making the price of nickel sulfate rise faster than raw materials in the near future. We analyze the finished product and the raw material side separately.

Currently, the cost of producing stainless steel from stainless steel scrap is around 14,485.89 yuan/mt, while producing it from high-grade NPI costs about 13,753.73 yuan/mt. Due to slow Indonesian RKAB approval, there were concerns about nickel ore supply. As a result, the high-grade NPI prices were strong, with the SMM high-grade NPI index increasing by about 20.8 yuan/mt WoW. The cost of producing stainless steel from highgrade NPI rose by approximately 166 yuan/mt WoW.

March 6th, SMM's battery-grade nickel sulfate index price was 29,029 yuan/ton, up 191 yuan/ton from the previous working day, and the price of battery-grade nickel sulfate was 28,800-29,400 yuan/ton, with an average price increase of 200 yuan/ton from the previous working day.

SMM, February 28, February 28, SMM8-12% high nickel pig iron average price of 960 yuan/nickel point (ex-factory tax included), 10 yuan/nickel point higher than the previous working day.

SMM's Exclusive Analysis of Nickel Pig Iron Production Review and Outlook